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TNA: Budget needs to be consistent with IMF economic reform program and macroeconomic framework
TNA MP M.A. Sumanthiran told Parliament that the Government must rethink its priorities and address the needs of the lower income classes of the country. Sumanthiran pointed out that the Government, despite promises, has not allocated funds to provide the promised subsidy for kerosene but is making essentials necessary for the country’s middle class and upper-middle class readily available.
“The Government is making petrol and super diesel available but there is a shortage of diesel and kerosene. The priority must be the other way around. The needs of those who need the support most must be prioritised,” he said. The TNA MP said he believes the Government has taken this course of action in a bid to silence the protests of the country’s middle and upper-middle class. “The Government is doing this because it thinks by silencing the dissent of the middle and upper-middle class it can get away with blue murder,” he accused. According to the MP, the interim Budget has only further burdened the lower-income classes of the country. “Hoping to supply the Budget deficit through local revenue is not the answer,” he said. Sumanthiran pointed out that many shootings and killings are taking place across the country. “Police are not investigating these crimes and are instead being deployed in the thousands to stifle genuine protests by the people. Around 1000 policemen are deployed to stop a protest march of just 500 people. Earlier tear gas and water cannons were used on protestors and now the Government is using the Prevention of Terrorism Act to repress them as well,” he noted. He also questioned if the President is attempting to appeal to some sections of the country. “The President signed the recent detention orders in Sinhala, whereas he usually signs in English.
Is there a sudden change of personality? Is he trying to appeal to certain sections of society by signing in Sinhala?” he asked. The MP pointed out that the International Monetary Fund (IMF) has announced the Staff-Level Agreement with Sri Lanka but based on several conditions. “Even as it was announced the IMF released this statement and I quote – ‘the new Staff-Level Agreement is subject to the approval of IMF management and the Executive Board in the period ahead, contingent on the implementation by the authorities of prior actions including financial assurances from Sri Lanka’s official creditors.’ In other words, this is contingent on something that has not been done yet. We hope the Government sees to this,” he said. But the MP also pointed out that to fulfil these obligations the Budget needs to be consistent with the economic reform program and macro-economic framework underlying by the IMF. Pointing out Japan’s denial of hosting a debt restructuring conference on Sri Lanka contrary to President Ranil Wickremesinghe’s claims, Sumanthiran said the people must be told the whole truth. “People are being told what they like to hear,” he said.
News
Power sector overhaul targets losses, debt and tariffs
Independent trade unions cry foul
The government has launched a far-reaching overhaul of the electricity industry, breaking up the Ceylon Electricity Board (CEB) into six fully state-owned companies, claiming to rein in chronic losses and mounting debt.
Under the Preliminary Transfer Plan, the newly incorporated entities, namely, Electricity Generation Lanka (Pvt) Ltd (EGL), National Transmission Network Service Provider (Pvt) Ltd (NTNSP), National System Operator (Pvt) Ltd (NSO), Electricity Distribution Lanka (Pvt) Ltd (EDL), CEB Employees Funds (Pvt) Ltd (CEBEF) and Energy Ventures Lanka (Pvt) Ltd (EVL), will take over the assets, liabilities and operations of the CEB from the appointed date.
Independent trade unions have opposed the restructuring programme.
At the core of the new model is the creation of an independent National System Operator, which will handle power system planning and competitively procure electricity from Electricity Generation Lanka, Independent Power Producers and non-conventional renewable energy developers. Power will be wheeled through the national grid operated by the NTNSP and sold to distribution companies.
Explaining the economic rationale, Eng. Pubudu Niroshan Hedigallage said the separation of functions was critical to restoring cost discipline in the sector.
“Electricity planning and procurement will now be carried out independently, based on least-cost principles. That is essential if we are to control generation costs and ease the upward pressure on tariffs,” he said.
Electricity Generation Lanka, though a successor to the CEB, will compete with private and renewable energy producers for projects, a move expected to curb inefficiencies and end guaranteed returns enjoyed under earlier arrangements.
“There will be no automatic allocation of projects. EGL must compete in the market like any other generator,” Eng. Hedigallage said.
According to officials, the Preliminary Transfer Plan provides for one generation and one distribution company initially, with further unbundling planned under the Final Transfer Plan to introduce sharper financial accountability at operational level.
Economists note that the restructuring is closely watched by multilateral lenders and investors, who have repeatedly flagged the power sector as a major fiscal risk.
The government has insisted that the reforms do not amount to privatisation, stressing that all six entities remain 100 percent state-owned. However, independent trade unions are of the view that what the government has undertaken is divestiture in all but name.
By Ifham Nizam
News
India, Sri Lanka speakers discuss technology-driven parliamentary innovation, including AI-enabled systems
Speaker of Lok Sabha Om Birla and Sri Lankan Speaker (Dr.) Jagath Wickramaratne recently discussed the possibility of expanding parliamentary cooperation through regular exchanges, formation of friendship groups, collaboration in policy and programme design and deeper engagement in technology-driven parliamentary innovation, including AI-enabled systems, real-time multilingual translation, and capacity building through Parliamentary Research and Training Institute for Democracies (PRIDE).
The discussion took place on the sidelines of the 28th Conference of Speakers and Presiding Officers of the Commonwealth (CSPOC) held in New Delhi recently.
The following is the text of the statement issued by the Indian High Commission in Colombo: ” Speaker of the Parliament of Sri Lanka (Dr.) Jagath Wickramaratne concluded his visit to India from 14-18 January 2026, for participation in the 28th Conference of Speakers and Presiding Officers of the Commonwealth (CSPOC) held in New Delhi. This was his first visit to India after assuming office. He was accompanied by Secretary-General of Parliament Kushani Rohanadeera and Assistant Director, (Administration) of the Parliament of Sri Lanka Kanchana Ruchitha Herath. Following the 28th CSPOC from 14-16 January 2026, Speaker and his delegation visited Jaipur, Rajasthan as a part of a two-day tour for CSPOC delegates from 17-18 January 2026.
The 28th CSPOC was inaugurated by Prime Minister of India Narendra Modi on 15 January 2026 at the Central Hall of Samvidhan Sadan, Parliament House Complex, New Delhi. Welcoming parliamentary leaders from across the Commonwealth, Prime Minister Modi highlighted the success of Indian democracy in providing stability, speed, and scale. He shared India’s efforts at giving voice to the Global South and forging new paths of cooperation to co-develop innovation ecosystems. He underlined the use of Artificial Intelligence by the Parliament of India to attract youth to understand Parliament. Prime Minister expressed his confidence in the CSPOC platform for exploring ways to promote knowledge and understanding of parliamentary democracy.
The conference, chaired by Lok Sabha Speaker Om Birla, convened 44 Speakers and 15 Deputy Speakers from 41 Commonwealth countries, along with representatives of four semi-autonomous Parliaments. The theme of the conference was “Effective Delivery of Parliamentary Democracy.” During the conference, participants addressed the role of Speakers in reinforcing democratic institutions, the integration of artificial intelligence in Parliamentary functions, the influence of social media on Members, approaches to enhance public engagement with Parliament, and measures to ensure the security, health, and wellbeing of Members and Parliamentary staff.
The visit marked a significant milestone in the evolving parliamentary partnership between India and Sri Lanka. Last year, two Parliamentary Delegations visited India for Orientation Programmes in May 2025 and August 2025 respectively. These visits, in line with the intent of the India – Sri Lanka Joint Statement on ‘Fostering Partnerships for a Shared Future’, further reinforce the strong democratic ethos and enduring friendship shared between the two nations.”
News
Pakistan HC celebrates academic achievements of Lankan graduates
The High Commissioner of Pakistan in Sri Lanka hosted a special reception on Friday (16) for Sri Lankan alumni who have recently returned from their studies in Pakistan. The event, held at the Pakistan High Commission, celebrated the academic achievements of the graduates and reinforced the deep-rooted educational ties between the two nations.
The Allama Iqbal Scholarship Programme, a flagship initiative launched in 2019, has become a vital pillar of bilateral cooperation. The High Commissioner highlighted that Pakistan offers 1,000 fully funded scholarships at graduate, postgraduate, and PhD levels, with over 500 Sri Lankan students currently pursuing their education in Pakistan’s premier universities.
“Sri Lanka and Pakistan share an enduring friendship rooted in a shared history of mutual respect and culture,” the High Commissioner remarked during the address. “Education is the key to unlocking the success of your brilliant futures and creating bonds that extend well beyond the classroom”.
Addressing the alumni as “custodians” of a noble cause, the High Commissioner urged the alumni to act as brand ambassadors by sharing their knowledge to guide deserving students toward academic opportunities in Pakistan.
He emphasised their responsibility to mentor young minds, ensuring no capable student misses the chance for a promising future. Furthermore, the alumni were encouraged to take an active role in organising frequent educational and cultural engagements to inspire and enlighten others while strengthening the ties between the two nations.
The High Commissioner emphasized that each graduate serves as a “bridge” between the two countries, playing a meaningful role in uplifting Sri Lanka while further strengthening Pakistan–Sri Lanka relations. The alumni were invited to remain closely connected with the High Commission to facilitate future initiatives that strengthen people-to-people ties.
The evening concluded with a traditional Pakistani dinner, where the alumni shared stories of their academic growth and cultural experiences in Pakistan in a spirit of friendship and togetherness.
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